According to preliminary reports by the Department of Mineral Resources’ Central Energy Fund (CEF), the price of petrol was expected to come down by 19-cents and diesel by 50-cents per litre this month.

However, due the general fuel levy hike recently announced by the Minister of Finance Enoch Godongwana, motorists will see a slight decrease at the pump.

Both grades of petrol, 93 and 95 octane, will decrease by five cents a litre, diesel will decrease by 36 cents a litre, illuminating paraffin at retail level will decrease by 75 cents a litre and LP gas will decrease by 89 cents per kilogram.

Nedbank’s Senior Economist Isaac Matshego says it is unlikely that the levy will have significant impact on local inflation.

“The increase of the fuel levy is unlikely to have a significant impact on local inflation, as the increase in fuel prices will probably be reversed by lower global oil prices and the rand strength in the coming months. Overall, we expect the increase of the fuel levy to have an impact of less than half a percentage point on the overall inflation and could actually be less than that, so we do not really expect a significant direct impact from the increase of the fuel levy.”

Slight decrease in fuel prices as of midnight